Naira loses N27.12 in two days to N1,361.84 despite $55.16bn reserves

The naira lost N27.12 against the dollar in two trading sessions, closing at N1,361.84 at the official Nigerian Foreign Exchange Market on Friday, October 23, 2026. CBN data showed the rate moved from N1,334.72 on Wednesday, October 21. The drop is 2.03% and came as external reserves reached $55.16 billion.

At the parallel market, the dollar rose to N1,375, leaving a N13.16 gap between the official and street rates. The official rate also weakened by N27.12 week-on-week.

Official and parallel markets

The latest exchange rate means businesses and individuals buying dollars through the official market now face higher naira costs than they did on Wednesday. The depreciation could increase the cost of imported goods and services if the weaker rate persists.

Currency traders confirmed that the naira weakened by N5 to trade at N1,375 per dollar at the parallel market, commonly operated by Bureau de Change dealers. The difference between the official and parallel market rates stands at N13.16 per dollar. Although the parallel rate remains higher, the relatively narrow gap suggests both markets are under pressure.

Reserves and market pressure

CBN figures put Nigeria's external reserves at $55.16 billion as of October 22, 2026. Foreign exchange reserves provide a financial buffer, helping the country meet external obligations and manage potential currency market disruptions. But rising reserves do not automatically translate into an appreciating currency. Exchange rate movements also depend on dollar demand, foreign exchange supply, investor confidence and broader economic conditions.

The naira also fell at the Nigerian Autonomous Foreign Exchange Market on Monday, October 19. It closed at N1,333.76 per dollar compared with N1,331.76 in the previous session, a drop of N2 or 0.15%. Against the pound sterling, it fell by N15.85 to N1,778.30. Against the euro, it shed N6.77 to close at N1,497.41.

What it means for businesses and households

The depreciation could put additional pressure on importers, manufacturers and businesses that depend on foreign currency to buy raw materials, equipment and other essential products. Nigerians paying overseas tuition, international travel expenses and foreign-denominated bills may also face higher costs.

For households already managing elevated living expenses, sustained currency weakness could eventually translate into higher prices for imported products. Attention will now turn to the naira's performance in coming trading sessions and whether improved dollar supply can help stabilise the exchange rate.